To Devin Dalton CEO From Engineering Team 18 RE Shipping Issues Date August 30 2013 The direct user the Logistics Manager needs a clear and effective way to rank the available shipping companies This ranking will put one company above the rest one that will be the most reliable and best overall choice for his company D Dalton Technologies to use when shipping their products from Ceramica to Bowman in keeping with their just in time strategy Along with a procedure the Logistics Manager needs an example of the procedure carried out on sample data and reasoning for each step in the procedure Our procedure is designed to first eliminate the companies that are the most consistently late and then rank the remaining companies based off of how late they are when they are late It is appropriate to use our procedure when there is a sufficient amount of data to accurately represent each company for example 100 shipping times We are assuming the data given for each shipping company is representative of their normal delivery delays The procedure is as follows 1 Calculate the total number times that each of the shipping companies delivered their package late by taking the number of data points that are greater than 0 in a program that can analyze data such as Excel 2 Eliminate the bottom half of the shipping company options rounding down in the sample data the bottom two These in order of ascending number of times late will be given the bottom rankings No 3 and 4 in the sample data If there are only two shipping companies to decide between the procedure is complete here 3 Using only the data for when the shipment actually arrived late non zero data points calculate the median for the remaining companies by putting the data points in numerical order and finding the middle point average the two middle points if you have an even number of data points Page 1 of 2 4 In order of ascending median time late assign each of the remaining companies the ranking 1 2 3 etc with the number 1 company being the optimal choice Here is a sample procedure carried out 1 Upon calculations in Excel we find that IHE delivered 155 late packages DS 219 late packages SC 176 late packages and UE 241 late packages 2 We eliminate DS and UE for having the most late packages giving UE a ranking of 4th and DS a ranking of 3rd 3 We sort IHE and SC in order of descending hours late and remove all 0 s Then we find the median or middle point of each This is 1 57 hours for IHE and 1 29 hours late for SC 4 SC has the lowest median hours late so they are ranked 1 st Next is IHE who is given the rank of 2nd 5 Our complete rankings are 1st SC 2nd IHE 3rd DS and 4th UE Our reasoning for steps 1 and 2 is that the most important factor is being on time as hours or even minutes can make the difference Therefore we eliminate the half of the companies that are most consistently late Our reasoning for steps 3 and 4 is that we know the shipping companies will be late sometimes so we should choose the company that tends to be the least late when it does happen Page 2 of 2